Compute diluted earnings per share

Assignment Help Accounting Basics
Reference no: EM133135588

Question - On January 1, 2020, Teal Company issued 10-year, $1,880,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 16 shares of Teal common stock. Teal's net income in 2020 was $391,300, and its tax rate was 20%. The company had 91,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020.

Required -

(a) Compute diluted earnings per share for 2020.

(b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $910,000 of 6% convertible preferred tock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Teal common stock.

Reference no: EM133135588

Questions Cloud

Approving or updating job descriptions : Who is involved in approving or updating job descriptions (what level of management)? (important question please provide self written accurate answer)
Pros and cons of performance appraisal methods : Your HR function is evaluating its current processes used in training and development and performance management. They intend to move to a data-driven approach
Reporting phase of an affirmation action plan : Which of the following activities are performed during the actions and reporting phase of an affirmation action plan?
Data visualisation by using the python language : Develop the understanding of constructing effective data visualisation by using the Python language - Visualisations that are able to effectively convey
Compute diluted earnings per share : Compute diluted earnings per share for 2020, assuming the same facts as above, except that $910,000 of 6% convertible preferred tock was issued
How much is the unit cost of the finished products : The proceeds being credited to the order. The customer has agreed to accept the good units. How much is the unit cost of the finished products
Appeal process for a nonunion grievance procedure : Should there be an appeal process for a nonunion grievance procedure? If so, what kind?
What is the difference in the cash outflow to zumwald : What is the difference in the cash outflow to Zumwald of the sourcing alternatives (i.e., internal vs. outsourcing)
Goal for increasing multicultural skills : Write yourself a S.M.A.R.T. goal for increasing your multicultural skills:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare flexible selling and administrative expenses budget

Prepare a flexible selling and administrative expenses budget for January 2016, for sales volumes of $90,000, $115,000, and $135,000.

  What amount of nonspontaneous will be needed

Sales during the past year were P100, What amount of nonspontaneous, additional funds (AFN) will be needed during the next year?

  What is the most preferred form of recognition in the

what is the most preferred form of recognition in the workplace? in a survey by office arrow 163 of 388 administrative

  What was the average issue price of each preferred stock

What was the average issue price of each preferred stock, Compute the amount of cash dividends paid during the current year

  What is the business environment like for jennifer

What is the business environment like for Jennifer and the type of business she is planning? What dimensions of the business environment might impact Jennifer

  Signs an agreement to manufacture a specially designed

texas product corporation begins operation on april 1 2012. the firm engages in the following transaction during

  Draft a memo to hydro president stating findings

Draft a memo to Hydro's President stating your findings and conclusions and analyzing the impacts on Hydro's financial statements if the current reporting

  Assess the initiatives methods and ways the hr department

assess the initiatives methods and ways the hr department can address employee well-being to determine at least three

  Prepare the journal entries related to the gift cards

Prepare the journal entries related to the gift cards. Nancy's retail store sold $5,000 dollars' worth of gift cards and received cash on June 18.

  Compute the net present value of each investment

Compute the net present value of each investment. Ignore income taxes.

  Prepare necessary adjusting journal entries

ACC2CRE Corporate Reporting Group Case Study Assignment. Prepare necessary adjusting journal entries for the above events

  Matrix accounting pays all salaried employees biweekly

matrix accounting pays all salaried employees biweekly. overtime pay is paid in the next biweekly period. matrix

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd